General Dynamics Corp.

August 18, 1985|By Deanne Brandon

BAN ENDS. The Navy restored two divisions of General Dynamics Corp. to bidding status -- and promptly awarded the company $629 million in new contracts. The divisions had been banned because of what the Pentagon called widespread overbilling practices. To end the dispute, General Dynamics negotiated settlements on $158.1 million worth of disputed expense claims on contracts dating to 1973. The company accepted the Navy's position that $111 million worth of the disputed amount would not be paid by taxpayers. Another $17 million in claims was found to be proper, the Navy said.